Estate Planning for Blended Families in Nebraska: Protecting Everyone You Love

Over 40% of married couples in the U.S. are blended families, bringing unique dynamics—and legal complexities—to the table. If you’re part of a blended family in Nebraska, a one-size-fits-all will isn’t going to cut it. The law has default rules for who inherits what, and they rarely reflect the complexity or intentions of modern family structures. Without a clear estate plan, you risk leaving behind confusion, hurt feelings, or even litigation.

What Makes Blended Families Legally Complicated?

Let’s say you’re remarried and have children from a previous relationship. If you die without a will, Nebraska’s intestacy laws (Neb. Rev. Stat. § 30-2302) will divide your assets in ways that may not reflect your wishes. For example, if you are married with children from a previous relationship and you die without a will, your current spouse would inherit a portion of your estate (often 50% or more, depending on circumstances), with the remainder going to your biological or adopted children. This means your stepchildren would inherit nothing, and your biological children might receive less than you intended, especially if your spouse then leaves their estate to their own children.

Even with a basic will, problems can arise:

• Your spouse could inherit everything and choose not to pass anything to your children

• Your stepchildren may receive nothing unless legally adopted

• Assets like retirement accounts or life insurance may go to outdated beneficiaries if you haven’t updated them

Assets like retirement accounts (e.g., 401ks, IRAs) or life insurance policies pass directly to the named beneficiaries, completely outside your will or trust. If those designations are outdated—say, they still list a previous spouse—your carefully crafted estate plan can fall apart, and your assets won’t go where you intend.

This isn’t about mistrust—it’s about clarity and fairness. You love your spouse. You love your kids. You want to protect everyone. That means getting specific.

Tools That Can Help

Revocable Living Trusts: These allow you to pass assets to your spouse for their use during life, but ensure that what’s left eventually goes to your children. You can set conditions and timelines that reflect your unique family structure.

Wills with Testamentary Trusts: You can build in similar protections even if you don’t use a living trust. A testamentary trust only activates after your death and allows more control than an outright gift.

Qualified Terminable Interest Property (QTIP) Trusts: These are a specialized type of trust often used in second marriages. They allow you to provide for your current spouse’s financial needs for their lifetime, while guaranteeing that when your spouse passes away, the remaining assets will go to your children from a previous marriage, not to your spouse’s heirs.

Prenuptial or Postnuptial Agreements: These can clarify expectations for inheritance and marital property, especially in second marriages.

Beneficiary Designations: These need to be reviewed and updated regularly. Assets like life insurance and retirement accounts pass outside the will, and if those designations are outdated, your plan can fall apart.

Guardianship Designations: If you have minor children, especially from a prior relationship, clearly naming who would become their guardian if you and their other parent (if applicable) are both gone is crucial. This avoids court battles over who raises your children.

Letters of Intent and Family Meetings: While not legally binding, these can help explain your choices to your loved ones and reduce misunderstandings.

What to Consider in Nebraska

Nebraska doesn’t have an estate tax, but it does have an inheritance tax (Neb. Rev. Stat. § 77-2101 et seq.) that varies based on the relationship between the deceased and the beneficiary. Stepchildren and in-laws are taxed differently than biological children or spouses—typically falling into a higher inheritance tax bracket. The structure of your estate plan can impact how much your heirs pay, potentially saving your stepchildren significant amounts.

Also, Nebraska’s elective share law (Neb. Rev. Stat. § 30-2317) gives surviving spouses the right to claim a portion of the estate even if the will says otherwise. Your plan needs to account for that and be crafted accordingly if you want to balance support for a spouse and biological children.

Start the Conversation

Estate planning for blended families isn’t just about documents. It’s about values, priorities, and communication. The most thoughtful plans I’ve seen come from clients who ask hard questions early:

• What does “fair” look like in our family?

• Do we want to treat all children equally?

• How do we protect one another while honoring prior commitments?

These aren’t always easy conversations—but they’re some of the most important ones you’ll ever have.

Estate planning for blended families is highly individualized. A simple will or an online template can inadvertently create conflict or disinherit those you love. We specialize in crafting personalized estate plans that navigate the unique dynamics of blended families, ensuring your wishes are clear, legally sound, and protect everyone you care about. Contact us at 402-259-0059 or zach@zandersonlaw.com.